I’m a trading floor manager and an adjunct finance lecturer at the Ross School of Business, where I teach a class on “Applied Quant/Value Portfolio Management”. I’m featured in Matthew Schifrin’s book, The Warren Buffetts Next Door. I teach students about quant screening, valuation, and portfolio management, and so my skills were initiated by professors, fine-tuned by students and disciplined through time. I’ve had articles in Forbes, MoneyShow.com, Welt Am Sonntag, the San Francisco Chronicle, Santa Cruz Sentinel, MSN Money, the Globe and Mail, and many others. I climb ice in the winter and I love Finnish saunas, Ann Arbor, ‘Go Blue’ and the National Parks. I’m not a fan of local unsolved oil spills. I’m a huge fan of FactSet, but I screen for stocks at home with Stock Investor Pro from AAII. I’m a Marketocracy Master whose portfolio is available to clients in a managed account program.

Great Timing by Baldwin Investments on FCX and PXP -- Directors Sit at the Same Foundation

According to the latest filings, Baldwin Investments does not hold ETP, OAS, HTH, or MMR.

But, they hold FCX and PXP.

As of the latest filings, what did Baldwin do with FCX and PXP?

Baldwin sold 3,900 shares of FCX. As of the latest filing, they had 9,225 shares. They cut their position by -30%. The timing was remarkable, as FCX would drop from $39.58 on Sep. 28th, to a recent price around $32 – a decrease of roughly -20%. Baldwin sold completely out of DUK, AMX, BRFS and F. Of the stocks that they kept, FCX represented the largest reduction. Courtesy of FactSet, here are the trades:

FCX Baldwin trades -- data courtesy of FactSet

Baldwin bought 2,425 shares of PXP. As of the latest filing, they had 14,300 shares. They increased their position by 20%. The timing for PXP was remarkable as well – PXP rose from $37.47 on Sep. 28th to a recent price of $45 – an increase of roughly 20%. Baldwin initiated positions in Agilent Technologies (NYSE:A) and Urban Outfitters (NASDAQ:URBN), but of the stocks that they increased their position – PXP had the 3rd largest increase.

Baldwin PXP Trades -- data courtesy of FactSet

I like to follow funds that buy and sell interesting stocks. Next time Baldwin trades PXP, MMR or FCX, I’ll pay attention.

It is important to note that this buying and selling could be completely legal and may not be questionable at all. To be clear, a wealth management firm buys and sells on behalf of its clients: Not necessarily on behalf of its employees.

It is confidential information, but it would be very intriguing to see on whose behalf Baldwin is buying and selling. If any of its clients are related to any of the involved companies, and thus form a closed information loop, many more questions would need to be raised about the trading activity.

I tried reaching out for a comment from PXP, FCX, the University of Texas Cancer Institute and Baldwin Investments. As of this writing, no comment has been given. Awaiting for a comment. UPDATE — comment added from University of Texas.

Note, for disclosure — The University of Texas Investment Management Company does not hold MMR, PXP or FCX.

Note — I was unable to get a comment from the student managed fund at the University of Texas. I’d like to know if they hold/held MMR, PXP or FCX. As a personal belief, to avoid even the remote appearance of any conflict of interest, MMR, PXP and FCX should be on the restricted of unavailable stocks to trade at the University of Texas.

Disclosure: Kanterman is long FCX and is related to an individual who works at a bank that advised on the deal

Kai Petainen’s views on the market and stocks are his alone, and do not reflect the views of the Ross School of Business, or the University of Michigan. Kai teaches a class on quant screening, F334 — Applied Quant/Value Portfolio Management, at the Ross School of Business. Kai is a MFolio master at Marketocracy, and is featured in Matthew Schifrin’s book, “The Warren Buffetts Next Door“.

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